Monopolistic Competition Without Apology

52 Pages Posted: 16 Jun 2016

See all articles by Jacques-François Thisse

Jacques-François Thisse

Catholic University of Louvain (UCL); Centre for Economic Policy Research (CEPR)

Philip Ushchev

HSE University

Multiple version iconThere are 2 versions of this paper

Date Written: June 14, 2016


We provide a selective survey of what has been accomplished under the heading of monopolistic competition in industrial organization and other economic fields. Among other things, we argue that monopolistic competition is a market structure in its own right, which encompasses a much broader set-up than the celebrated constant elasticity of substitution (CES) model. Although oligopolistic and monopolistic competition compete for adherents within the economics profession, we show that this dichotomy is, to a large extend, unwarranted.

Keywords: monopolistic competition, oligopoly, product differentiation, the negligibility hypothesis

JEL Classification: D43, L11, L13

Suggested Citation

Thisse, Jacques-François and Ushchev, Philip, Monopolistic Competition Without Apology (June 14, 2016). Higher School of Economics Research Paper No. WP BRP 141/EC/2016, Available at SSRN: or

Jacques-François Thisse

Catholic University of Louvain (UCL) ( email )

Place des Doyens 1
Louvain-la-Neuve, 1348

Centre for Economic Policy Research (CEPR)

United Kingdom

Philip Ushchev (Contact Author)

HSE University ( email )

3a Kantemirovskaya St, room 405
123 Griboedov Canal Embankment, room 123
Saint-Petersburg, Saint Petersburg 191119

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